Byju’s raises $250m days after laying off 2,500 employees

Indian edtech titan Byju’s has raised US$250 million from existing investors including Qatar Investment Authority – the sovereign wealth fund of the state of Qatar.

Byju’s office / Source: Glassdoor

The new capital infusion follows the company announcing that it was laying off 2,500 employees – or 5% of its total workforce – to achieve overall profitability by March next year.

Byju Raveendran, the edtech firm’s founder and CEO, said that despite the major headwinds brought by current macroeconomic conditions, this year through 2023 is set to be the company’s “best year in terms of revenue, growth, and profitability.”

To this end, Byju’s said that it will have a three-pronged approach to achieve profitability by early next year. This includes merging its K10 subsidiaries in India, refocusing on international markets, and keeping its Aakash Education and Great Learning arms as stand-alone units.

The company added that Aakash Education and Great Learning – its test-prep and upskilling arms, respectively – have been doubling their revenue since their acquisition.

The announcement comes after Byju’s saw a slowdown in revenue and widening losses for its 2021 financial year.

See also: The $22b question on Byju’s valuation